Gold Prices Tipped to Remain Volatile Amid US Data Releases and West Asia Tensions

Gold and silver prices are expected to remain volatile in the coming week due to US data releases, West Asia tensions, and their impact on crude oil prices. Market participants will focus on consumer confidence, GDP, and PCE inflation readings from the US, alongside Eurozone inflation.

Additionally, manufacturing PMIs, speeches from Federal Reserve officials, and the US non-farm payrolls report will provide further cues for bullion sentiment. Geopolitical uncertainty will continue to play a role, particularly the US-Iran standoff, after US President Donald Trump said that he rejected Tehran's proposal to reopen the Strait of Hormuz within a week and resume nuclear talks in exchange for lifting the naval blockade.

Jateen Trivedi, VP Research Analyst at LKP Securities, warned that the broader outlook remains cautious with volatility likely to stay elevated as the market closely focuses on the upcoming US nonfarm payrolls and unemployment data. This will be crucial in determining expectations around the Federal Reserve's October policy decision.